Sensex, Nifty open mixed following global cues

Mumbai: Domestic equity market benchmarks witnessed a mixed start on Tuesday following a late-session increase in the previous session due to the introduction of a new closing auction session (CAS) framework and mixed global cues.

Sensex opened nearly 500 points or 0.63 per cent higher at 79,132.97, while Nifty slipped below the 24,750 mark, declining 70.4 points or 0.28 per cent.

Sector-wise, real estate, cement, IT, FMCG, auto, and banking stocks were under pressure as Nifty Realty, Nifty Cement, Nifty IT, Nifty FMCG, Nifty Auto, and Nifty Private Bank declined by up to 1.5 per cent. In contrast, Nifty Metal was the only index that was trading higher in early deals.

Analysts said markets are likely to remain range-bound, with stock-specific action dominating trade as investors assess global developments and await fresh macroeconomic triggers.

According to them, global markets remain cautiously positive as investors continue to evaluate the latest US corporate earnings and the interest rate outlook following last week's Federal Reserve policy decision.

With no major adverse global triggers overnight, investors are expected to closely track international cues and domestic developments, they said.

From a technical perspective, analysts see the 24,450-24,500 zone as immediate support for the Nifty, while 24,750-24,800 remains a key resistance band, the analysts said, adding that a sustained move above the resistance zone could extend the ongoing rally, while any decline towards support levels is expected to attract buying interest and keep the broader trend positive, they said.

"The overall market setup continues to remain constructive, backed by strong institutional participation, favourable global cues and improving technical momentum," the analysts noted.

On the commodities front, Brent crude -- the international oil benchmark -- rose more than 1 per cent to near $85 a barrel, while US West Texas Intermediate (WTI) crude gained 1.17 per cent to $81.28 a barrel.

Asian markets traded mixed with major indices like Japan's Nikkei declining 0.6 per cent, Hong Kong's Hang Seng marginally lower and South Korea's Kospi falling more than 1 per cent. However, China's Shanghai Composite and Indonesia's Jakarta Composite traded in positive territory.

Overnight, Wall Street ended higher with the S&P 500 gaining 1.48 per cent and the tech-heavy Nasdaq advancing more than 2 per cent.